(Yicai Global) Sept. 20 -- Ganfeng Lithium, one of the world's biggest makers of lithium products, is set to almost double its supply of rechargeable battery ingredients to South Korea's LG Chem, just a month after their first contact.

Under a new deal signed by Gangfeng, its GFL International unit and LG Chem, the Jiangxi province-based firm will supply 45,000 tons more of lithium hydroxide and lithium carbonate between next year and 2025, it said yesterday. Last month, they agreed on 47,600 tons of lithium dioxide at market prices until 2022.

Lithium is an important basic material used in rechargeable batteries, which are the lifeblood of the rising new-energy vehicles sector, where China was the world's largest and fastest growing market last year. LG Chem is likely to need the materials for its second China factory that will be completed in October next year.

The Seoul-based company said in July that it will invest USD2 billion in the project and that the production base will supply international carmakers such as Hyundai Motor, Volvo Cars, General Motors, Fiat Chrysler Automobiles and Groupe Renault with an annual output of 32 gigawatt hours in batteries.

Editor: Emmi Laine